Invesco FTSE RAFI Europe

ETF description

This ETF invests in a broad selection of companies across Europe, choosing firms based not simply on their share price but on underlying business measures such as sales, profits, book value and dividends.

In other words, this fund uses a ‘fundamental weighting’ approach: instead of giving the biggest companies the largest share simply because they have the highest market value, it gives greater weight to companies that score higher on these business performance indicators.

This ETF may appeal to an investor who has a medium to long‑term investment horizon, who is already comfortable with shares as an asset class, and who is looking for a regional European equity exposure with a different selection method.

Issuer details

Invesco is one of the world’s largest ETF providers with over US$680 billion globally in ETF assets under management (as at 31 March 2024). It offers over 140 EMEA ETFs spanning regions and strategies across equities, fixed income and commodities.

Its culture of innovation lets it find new opportunities for investors, as well as ways to improve the performance of core ETF exposures.

Index details

The Reference Index is designed to break with the traditional price‑based market cap weighted index design and instead derives its constituent weights from fundamental measures of company size. Its constituents are selected and weighted using four fundamental factors: Sales (averaged over the prior five years), Cash Flow (averaged over the prior five years), Book Value (at the review date), and Dividends (total dividend distributions averaged over the last five years).